Ellen Roseman

Personal finance columnist at the Toronto Star and previously the Globe and Mail. My passion is consumer advocacy and making sense of money

Feb 10, 2022
Published on: LinkedIn
1 min read

This is a shocking case of an investment dealer making a lowball offer to a widow who lost money through her advisor’s choice of risky investments and excessive trading, leading to high commissions. The ombudsman investigated the complaint and recommended compensation of $226,497 (including interest) to the client.

The firm did not agree with the recommendation, saying that she understood and accepted the risk in her portfolio, and offered her only $25,000. She declined.

The ombudsman was about to release a public report on the case when the firm raised its offer to $40,000. This was still a pittance, but the client had waited for months and felt she had no alternative but to take it. Meanwhile, the voluntary settlement prevented the ombudsman from releasing a report and naming the firm.
#faircanada #obsi #haroldgeller #nameandshame #unsuitableadvice

Read about what can happen when a firm offers a significantly lower amount to a consumer than what OBSI has recommended after completing an investigation. https://lnkd.in/gSnyqVft

Investor incurs significant losses from unsuitable advice and excessive trading and accepts low settlement offer

obsi.ca